AIR H1 2026 Results: Resilient Core Growth Amid Geopolitical Disruption
AIR Global (NASDAQ: AIIR), the global leader in Flavored Shisha Molasses (FSM) and an innovator in next-generation inhalation technologies, reported its financial and operational results for the six-month period ended June 30, 2026. These results represent AIR Global’s inaugural earnings report as a publicly traded company following its May 18, 2026, listing on Nasdaq via a business combination with Cantor Equity Partners III.
Despite severe geopolitical bottlenecks in the Middle East and substantial one-time transaction and listing costs, AIR demonstrated strong underlying commercial resilience. Revenue grew by 3.7% year-over-year to $206.9 million, while Adjusted EBITDA remained stable at $71.7 million. On a reported basis, the company recognized an EBITDA loss of $52.1 million and a net loss of $81.8 million, driven almost entirely by non-recurring equity and cash expenses tied to the Nasdaq listing and public readiness.
Key Financial Performance
For the first half of 2026, AIR Global reported revenue of $206.9 million, representing a 3.7% increase compared to $199.5 million in H1 2025. Gross profit rose 2.4% year-over-year from $114.0 million to $116.8 million, resulting in a gross margin of 56.5%, down 60 basis points from 57.1% in the prior-year period.
Due to listing-related non-cash and one-time charges, the company recorded an operating loss of $63.6 million in H1 2026, compared to an operating profit of $51.5 million in H1 2025. Net loss for the period stood at $81.8 million compared to a net profit of $31.9 million in H1 2025, yielding a basic loss per share of $0.57 compared to basic earnings per share of $0.22 in H1 2025. Reported EBITDA shifted from $61.0 million in H1 2025 to negative $52.1 million in H1 2026. However, Adjusted EBITDA remained essentially unchanged at $71.7 million in H1 2026 compared to $71.7 million in H1 2025 (a 0.1% increase), with the Adjusted EBITDA margin softening by 120 basis points from 35.9% to 34.7%.
| Financial Metric ($ in millions, except EPS) | H1 2026 | H1 2025 | Change (%) |
| Revenue | $206.9 | $199.5 | +3.7% |
| Gross Profit | $116.8 | $114.0 | +2.4% |
| Gross Margin (%) | 56.5% | 57.1% | -60 bps |
| Operating (Loss) / Profit | $(63.6) | $51.5 | — |
| Net (Loss) / Profit | $(81.8) | $31.9 | — |
| Basic EPS ($) | $(0.57) | $0.22 | — |
| EBITDA | $(52.1) | $61.0 | — |
| Adjusted EBITDA | $71.7 | $71.7 | +0.1% |
| Adjusted EBITDA Margin (%) | 34.7% | 35.9% | -120 bps |
Top-line expansion was driven by robust global price and mix realisations of 14.0%, which successfully offset a 9.0% decline in FSM shipment volumes caused by acute supply disruptions in March in the Strait of Hormuz. Excluding Global Travel Retail (GTR) – which dropped 46.5% due to regional transit constraints – FSM shipment volumes declined 6.6%. High-teen pricing adjustments, particularly in the Middle East, Africa, and Asia (MEAA) region where price/mix expanded by 17.1%, protected revenue growth. Cost of sales grew 5.5% year-over-year, reflecting increased revenue alongside elevated freight, logistics, and raw material expenses associated with rerouting shipments around regional bottlenecks.
Regional and Segment Performance
AIR Global operates across three primary geographic regions for its core Flavored Shisha Molasses (FSM) business – MEAA, Americas, and Europe – alongside its emerging Next Generation Categories (NGC) segment.
In the FSM MEAA segment, H1 2026 revenue increased 4.0% to $136.7 million compared to $131.4 million in H1 2025, anchored by 17.1% price/mix expansion. Adjusted EBITDA for MEAA decreased 4.0% from $62.3 million to $59.7 million due to Strait of Hormuz transit disruptions, public market readiness allocations, and higher freight costs incurred to reroute shipments. In the FSM Americas segment, revenue expanded 3.4% to $42.8 million in H1 2026 up from $41.4 million in H1 2025. Adjusted EBITDA surged 17.2% to $19.8 million compared to $16.9 million in the prior period, driven by favorable price/mix realisations and strict operational expense management. In the FSM Europe segment, revenue remained virtually flat at $25.2 million in H1 2026 compared to $25.1 million in H1 2025 (+0.4%). Adjusted EBITDA fell from $1.8 million to $0.1 million (-91.7%), heavily impacted by temporary supply delays, regulatory transition expenses, and shift costs linked to restructuring regional distribution channels.
In the Next Generation Categories (NGC) segment, revenue surged 37.5% to $2.2 million in H1 2026 compared to $1.6 million in H1 2025, driven by expanding international traction for the OOKA heating device, Crown Switch pod system, and nicotine pouches. NGC segment Adjusted EBITDA losses narrowed from $9.3 million in H1 2025 to $7.9 million in H1 2026 as marketing and commercialization investments stabilized.
Across all segments, total revenue reached $206.9 million compared to $199.5 million (+3.7%), and total Adjusted EBITDA reached $71.7 million compared to $71.7 million (+0.1%).
| Segment Financials ($ in millions) | H1 2026 | H1 2025 | Change (%) |
| Revenue by Segment | |||
| FSM – MEAA | $136.7 | $131.4 | +4.0% |
| FSM – Americas | $42.8 | $41.4 | +3.4% |
| FSM – Europe | $25.2 | $25.1 | +0.4% |
| Next Generation Categories (NGC) | $2.2 | $1.6 | +37.5% |
| Total Revenue | $206.9 | $199.5 | +3.7% |
| Adjusted EBITDA by Segment | |||
| FSM – MEAA | $59.7 | $62.3 | -4.0% |
| FSM – Americas | $19.8 | $16.9 | +17.2% |
| FSM – Europe | $0.1 | $1.8 | -91.7% |
| Next Generation Categories (NGC) | $(7.9) | $(9.3) | +15.1% |
| Total Adjusted EBITDA | $71.7 | $71.7 | +0.1% |
Reconciliation of Net Loss to Adjusted EBITDA
To bridge the H1 2026 net loss of $81.82 million to a Reported EBITDA loss of $52.09 million (compared to a $61.04 million EBITDA profit in H1 2025), $29.73 million was added back across D&A ($11.50 million), net finance costs ($13.87 million), taxes ($3.83 million), and minor adjustments.
Reaching Adjusted EBITDA of $71.75 million (virtually flat versus $71.66 million in H1 2025) required backing out $123.86 million in one-time and non-recurring expenses. Listing events accounted for the vast majority, led by $48.15 million in equity issued, $47.74 million in transaction cash costs, $12.44 million in share-based compensation, and $7.37 million in public readiness expenses. Strategic and operational add-backs comprised $3.80 million in Strait of Hormuz logistics disruption costs, $1.98 million in accelerated PMTA regulatory filings, $1.68 million in legal/provision write-offs, and $0.70 million in restructuring charges.
Geopolitical Disruption and Supply Chain Mitigation
Historically, approximately 70% of AIR’s shipment volumes passed through the Strait of Hormuz. Following the sudden closure of the route in early 2026, March FSM shipment volumes dropped by 38.6%, creating a temporary operational backlog.
In response, management rapidly implemented alternative air, sea, and land logistics networks to bypass transit choke points. Consumer purchase orders remained fully intact throughout the period, preventing lost end-market demand. As alternative routes opened, volume recovery accelerated rapidly and turned positive year-over-year in June 2026. To permanently de-risk its supply chain, AIR is accelerating factory footprint diversification, including plans to establish a new manufacturing facility in Romania to serve European and Western markets directly.
Next-Gen Innovation, Greentank Strategic Partnership, and PMTA
AIR Global is actively executing a strategic pivot toward harm-reduced social inhalation products. On July 29, 2026, AIR announced a $20.0 million strategic equity investment in Greentank Innovations Corp. at a $170.0 million pre-money valuation, securing an option to invest additional capital within 24 months at a $250.0 million valuation.
Greentank powers AIR’s Crown Switch closed pod system through its proprietary Quantum Chip heating technology. Independent testing by McKinney Specialty Labs demonstrated that Crown Switch produces substantially lower concentrations of Harmful and Potentially Harmful Constituents (HPHCs) compared to traditional combusted cigarettes and several FDA-authorized electronic nicotine delivery systems (ENDS). AIR incurred $2.0 million during H1 2026 to accelerate Premarket Tobacco Product Application (PMTA) dossier preparations for U.S. FDA submission, marking a critical milestone for entering the United States market.
Capital Structure, Balance Sheet, and EGM Share Buybacks
As of June 30, 2026, AIR Global maintained net debt of $344.8 million. Based on trailing 12-month Adjusted EBITDA of $139.3 million, the company’s Net Debt-to-Adjusted EBITDA leverage ratio closed the period at 2.48x, staying within its long-term target of 2.5x.
AIR Global scheduled an Extraordinary General Meeting (EGM) for August 24, 2026, to seek shareholder authorization for three capital management and governance initiatives: First, approval for the repurchase of 5,000,000 ordinary shares from Harraden Circle funds at $10.49 per share, representing an aggregate transaction value of $52.45 million structured via a prepaid forward contract. Second, a standing buyback authorization permitting the Board to repurchase up to 20% of outstanding ordinary shares annually through August 2031 via open-market or off-market transactions. Third, governance modernization amendments to the Articles of Association allowing the electronic delivery of shareholder communications through the corporate investor relations portal.
Strategic Outlook & Full-Year 2026 Guidance
AIR leadership emphasized the strength of the core business model and highlighted that Al Fakher’s brand equity allowed the company to pass through double-digit price increases (+14.0% globally) without incurring consumer churn, successfully insulating margins against shipping and raw material cost spikes.
Management also noted that June’s return to positive volume growth continued into July and August, supporting strong visibility for accelerated second-half performance. Excluding $3.8 million in extra logistics costs and public company readiness fees, H1 Adjusted EBITDA growth would have tracked in the high-single-digit range. Finally, leadership confirmed that the Greentank partnership and pending PMTA filings serve as the primary strategic foundation for entering the high-margin U.S. vaping category.
For the full year 2026, AIR Global projects USD revenue growth between 4.0% and 6.0% year-over-year, with Adjusted EBITDA expected to grow in the low- to mid-single-digit range. Full-year shipment volumes are projected to be broadly flat compared to FY 2025, incorporating a 1.5% volume drag from Global Travel Retail headwinds. Capital expenditures are forecasted between $15.0 million and $18.0 million, the effective tax rate is expected at approximately 15%, and net debt leverage is targeted to remain stable around 2.5x.
Download AIR H1 2026 – Results Announcement
Download AIR H1 2026 – Earnings Presentation
Download AIR H1 2026 – Shareholder Letter
Download AIR H1 2026 – Historical Financials
